Bill Dudley, is a prior president of the New York Federal Reserve branch and now a senior research scholar at Princeton University's Center for Economic Policy Studies.
He wrote a column, published by Bloomberg, warning on the US debt limit negotiations:
- "At this point in the financial and economic cycle, the consequences of failing to reach a deal would be particularly dire."
- "Even if prioritization averted an immediate default on Treasury securities, the damage would be vast. Markets — still dealing with the consequences of a rash of bank failures — would be shocked, having expected the usual last-minute deal"
- "Stocks and bond prices would decline violently, Treasuries would gyrate as investors worried about how long the payment prioritization would protect them, and money market mutual funds might pull out of government debt en masse."
Link to Bloomberg (gated) for more.
